Next, you will be asked on the "Encryption Options" for your Volume. You can leave the default settings as it is and click "Next"

Next, you will be asked on the desired size for your volume. Click "Next" once you have specified the desired size for your Volume. The size that you specify here will be the allocated space for the file that you have created in Step 5 ( Figure 5 ).

Figure 5: Specify the size you want for your volume.

Next, you will be asked for the Volume Password and (optionally) for the Keyfile that will be used to encrypt/decrypt your TrueCrypt volume. Enter your desired password and select the "Use keyfiles" check box. Selecting to use keyfiles will allow you to store securely the keyfiles to your ACOS5/CryptoMate device. ( Figure 6 ).

Figure 6: Enter your password and select the "Use keyfiles" option

Once you have set your password, and selected the "Use keyfiles" selection. Click the "Keyfiles.." button. The "TrueCrypt - Keyfiles" will appear ( Figure 7 ).

Figure 7: TrueCrypt Keyfiles window.

Remember the password that you have entered in this step.

You can select any files for your keyfile (as stated in Figure 7). You can also generate a random keyfile of your own, to do this just click "Generate Random Keyfile. . ." button. The "TrueCrypt Keyfile Generator" will appear. Click the "Generate and Save Keyfile. . ." button. Save your randomly generated keyfile to a temporary file in your hard drive. Once saved, a confirmation box will appear. ( Figure 8 ).

Figure 8: Randomly Generate your own Keyfile.

Once you have saved your Randomly generated Keyfile. Click the "Close" button in the "TrueCrypt Keyfile Generator".

After successfully validating the PIN, the "Select Security Token Keyfiles" dialog window will show up.

In the "Select Security Token Keyfiles" dialog, click "Import Keyfile to Token". Select the file that you have generated and saved in Step 10

Once selected, You will be prompted for a verification. Just Click OK on the "New Security Token Keyfile Properties" dialog.

Wait for a while, the process might take some time depending on the size of the Keyfile. Once the Keyfile has been saved, it will be available for selection. ( Figure 10a and Figure 10b ).

Figure 10b: Set the Keyfile Name or you can leave the default and select "OK"

Figure 10a: The Keyfile is now saved in the ACOS5/CryptoMate token.

Select the newly created Keyfile and Click "OK". You should now see your Keyfile in the Keyfiles list ( Figure 11).

Figure 11: Newly Created Keyfile in the list..

Select "OK" and you will now go back to the "TrueCrypt Volume Creation Wizard"

In the "TrueCrypt Volume Creation Wizard" Click "Next...".

In the next Dialog you will be asked to Format your TrueCrypt Volume. Click the "Format" button and wait until the formatting process is done. The formatting process might take a while depending on the Volume size you specified in Step 7 above ( Figure 12 ).

Figure 12: Your TrueCrypt Volume is now being formatted.

After successfully formatting you Volume/ Your Volume is now created and ready for use ( Figure 13 ).

Figure 13: Your TrueCrypt Volume is now being formatted.

Click "Next" and then Click "Exit".

Now that you have created an Encrypted Volume, you can now delete the file that you have generated in Step 10.